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Moderna, Inc. (MRNA), based in Cambridge, Massachusetts, is a leading biotechnology company specializing in mRNA therapeutics and vaccines. With a market cap of $30.4 billion, Moderna has transformed the pharmaceutical industry through its groundbreaking mRNA technology, developing treatments for various diseases.
Companies valued at $10 billion or more are generally considered "large-caps," and Moderna fits this criterion perfectly, signifying its substantial size, stability, and influence in the biotechnology industry.
It has built a robust mRNA technology platform, showcased by the rapid development of its COVID-19 vaccine, Spikevax. Strategic collaborations, such as with Blackstone Life Sciences, further boost its financial flexibility and development capabilities.
Despite its reputation, MRNA shares are trading 53.5% below their 52-week high of $170.47, which they hit on May 24. Moreover, MRNA has declined 46.7% over the past three months, underperforming the broader Nasdaq Composite’s ($NASX) marginal fall over the same time frame.
In the long term, MRNA has plunged 20.3% on a YTD basis, and the shares have dropped 26.4% over the past 52 weeks. In comparison, the NASX has gained 13.4% in 2024 and 23.7% over the past year.
To confirm the bearish price trend, MRNA has been trading below its 50-day moving average since late June and under its 200-day moving average since early August.
On Sept. 9, Moderna shares surged over 4% following the UK Medicines and Healthcare Products Regulatory Agency's approval of its updated COVID-19 vaccine targeting the JN.1 variant.
In addition, on Aug. 23, Moderna gained over 1% after the European Commission approved its RSV vaccine, Mresvia, for use across 27 EU member states.
As a major contender in the biotech industry, Moderna faces stiff competition from Pfizer Inc. (PFE), which boasts a wide range of pharmaceutical and vaccine products. PFE has surpassed MRNA with a 3.3% return in 2024.
Despite MRNA's recent underperformance compared to the broader market, analysts are moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy" from 22 analysts in coverage. The mean price target of $123.42 reflects a 55.7% premium over current levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
